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    Variable cost : 115
    Jobs done in that month : 40
    115 x 40 = 4600
    Total cost for that month : 9000
    9000 - 4600 = 4400
    Fixed cost = 4400 Where did I go wrong if it's 8000 ?!?
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    (Original post by L-dog)
    payed per job : 360
    VC: 115(Roughly)
    Total revenue: 14400
    Profit: 1400 (Roughly)

    14400/360 = 40 jobs
    144000 - 1400 = 12,600
    Revenue - profit = total costs
    40 x 115 = 4,600 = variable cost
    12,600 -4,600 = 8000 = fixed costs
    Total revenue - variable costs = fixed costs.

    Hopefully this makes sense.
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    You had to firstly find the total revenue which was 14400 i think
    Then times 115 by 40 which got you 4600 which was his TOTAL Variable costs

    Minus 4600 from 14400 gets you 9800
    That got you the fixed costs+ the profit

    To find the fixed costs you had to deduct the profit he made

    This would get you with £8000


    Thats what i got and how i did it, thoughts?
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    For the calculation I had no idea, I couldn't even guess
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    (Original post by geeee11)
    For the calculation I had no idea, I couldn't even guess
    You should have just wrote the definition of fixed costs this would have enabled you to get at least one mark. Did you?
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    (Original post by JazzyT17)
    You should have just wrote the definition of fixed costs this would have enabled you to get at least one mark. Did you?
    No I didn't think.

    I spent half of the writing space trying to do the calculation and then crossing it all out :unimpressed:
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    I got 8000 pounds
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    (Original post by Johnathan123)
    Variable cost : 115
    Jobs done in that month : 40
    115 x 40 = 4600
    Total cost for that month : 9000
    9000 - 4600 = 4400
    Fixed cost = 4400 Where did I go wrong if it's 8000 ?!?
    I said they were rough. where is the profit??
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    I just feel like i done terribly bad. But when i added it all up it was right? If that makes sence. I just major ****ed up
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    At first I was like wtf but make sure you just write whats given and it should start to form in your head... So for example I realised to work out jobs done you divide 14400 (total revenue) by the revenue that year which was 360, this gave 40
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    (Original post by SSJ100)
    At first I was like wtf but make sure you just write whats given and it should start to form in your head... So for example I realised to work out jobs done you divide 14400 (total revenue) by the revenue that year which was 360, this gave 40
    that was easy, haha, i just over complicated the entire thing
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    Total revenue = selling price x no of sales
    14400 = 360 x no of sales
    Number of sales = 40.

    Variable costs = VC per sale x no of sales
    Variable costs = 115 x 40
    Variable costs = £4600

    Contribution = revenue - variable costs
    Contribution = 14400 - 4600
    Contribution = £9800

    Profit = contribution - fixed costs
    1800 = 9800 - fixed costs
    Fixed costs = 9800 - 1800
    Fixed costs = £8000
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    What about the limited liability question?
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    (Original post by JazzyT17)
    What about the limited liability question?
    i said that 'cause ed's uncle was giving him trade credit, if the business ran out of money then his uncle would lose out on profit 'cause ed wouldn't be responsible for the debt
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    (Original post by Emmaaaaaaa)
    i said that 'cause ed's uncle was giving him trade credit, if the business ran out of money then his uncle would lose out on profit 'cause ed wouldn't be responsible for the debt
    Yeah same! Also I wrote that Ed may be careless as he knows he has limited liability and buy more supplies then needed as he lacks experience which may eventually lead to debt which would mean Ed's uncle wouldn't get his money whereas Ed would have limited liability.
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    for last question do u do income - expenditure to get profit from figure 1 and 2?
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    (Original post by willgan267)
    for last question do u do income - expenditure to get profit from figure 1 and 2?
    I didn't have enough time to calculate it but yeah that's right. How many marks would I loose out of that 15 mark question if I don't have calculations?
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    My teacher looked at the paper straight after wards and said that it is £8000 for the fixed costs

    I struggled with the last essay question, and found that there weren't many calculations I just predicted something's, such as demand increasing so calculated the new profits and Ed's own income, but unsure about that one.
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    For the last question I calculated how much revenue he would receive if Ed did work in the new houses - I tried to prove how it would be risky?
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    Any predications for grade boundaries?
 
 
 
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